One of the members of Mongolia’s fragile coalition
government has ordered its ministers to leave their posts, a move that
has sent the country’s bonds into a tailspin and could threaten the
passage of crucial legislation.
Mongolian bonds plunged $7-$8 on Wednesday on the news that the
populist Mongolian People’s Revolutionary Party (MPRP) was no longer
prepared to work with the free-market Democratic Party, the country’s
biggest party, following June elections.

The numbers had always been pretty dramatic with the $500m, five-year
bond pushed out at 4.125 per cent yield and the larger 10-year $1bn at
5.125 per cent (Mongolia is not Spain is not x is not etc…)...MORE